(ver8) MICROECONOMICS 1 STUDY GUIDE ECO11 MICROECONOMICS 1 STUDY GUIDE © University of South Australia 2009 This work was printed from camera-ready copy submitted by the Unit Coordinator. The Flexible Learning Centre of the University of South Australia was not involved in its production. CONTENTS Contents 3 Introduction 5 An introduction to the economic perspective 13 Demand and supply 17 Elasticity 21 Market
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TOPIC - 2 DEMAND‚ SUPPLY AND MARKET EQUILIBRIUM The term ‘price’ has a great relevance in economics. In ordinary usage‚ price is the quantity of payment or compensation given by one party to another in return for goods and services. It is generally expressed in terms of units of some form of currency. But how does a product sell for a certain price‚ what constitutes the price of a product and how is the price determined is the bigger question. In economics‚ for a competitive market
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and Demand If the price for PepsiCo brands increase so does the supply. This is because as the price increases‚ PepsiCo has an incentive to supply more to meet the demand. This creates a positive supply curve. If PepsiCo competitors can produce their products for less and sell them for less money‚ than consumers will start to purchase competitor products as substitutions (Case‚ Fair‚ & Oster‚ 2009). The demand for PepsiCo brands is the price in which consumers are willing to buy at a given price
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Case in the news: Demand/Supply and Equilibrium This article is based on the fundamental idea of supply and demand of the iPhone 5 whose demand has outstripped its supply. Due to the fact that the demand is so high‚ even those who pre-ordered the new slim iPhone 5 had to wait until October to get this new phone. The sales have broken all previous records and stand tall at 2 million phones in the first 24 hours. According to the article people had been
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Chapter 4 CHAPTER 4: Demand and Supply Applications Demand and Supply Applications 4 Chapter Outline The Price System: Rationing and Allocating Resources Price Rationing Constraints on the Market and Alternative Rationing Mechanisms Prices and the Allocation of Resources Price Floors Supply and Demand Analysis: An Oil Import Fee Supply and Demand and Market Efficiency Consumer Surplus Producer Surplus Competitive Markets Maximize the Sum of Producer and Consumer Surplus Potential Causes
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Question 1 a) S2 S2 S1 S1 Q1 Q2 (unit) Q1 Q2 (unit) In this case a computer chip needed to produce a computer‚ as both are complementary goods. in which ‚ complementary is goods that can complement the function of the other goods. To produce more computers to be able to offer to the public‚ computer chips have to be increased. This happens because they are complements that if prices rise‚ the computer chip would automatically affect the price of the computer. Assuming that
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The idea of legalizing cannabis for medical use has been an ongoing controversial topic. The textbook mentions several arguments that favor both sides. In regards to the disadvantages of cannabis for medical usage‚ there are slight cognitive impairments and the increase heart rate and blood pressure. Although the overall effects are mild and short-term‚ they may have an adverse outcome with those with preexisting illnesses especially cardiovascular diseases. There has been much research done on this
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Lynn Ann Claims Representative _________________PROPERTY CASUALTY P.O. Box ______ ________________‚ NH 03108 RE: My Clients: Your Insured: Auto Supply Date of Loss: May 25‚ 1999 Claim No.: Third Party Demand Letter Dear Ms.____________: Kindly consider this letter to be a formal demand for settlement against ___________’s insured‚ Salem Auto Supply‚ its agents‚ servants and/or employees. The claimants are ____ and _________. Mrs. ____________
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Pros and Cons Of Legalizing Marijuana Marijuana is a very common street and recreational drug that comes from the marijuana plant. The plant that produces marijuana‚ as is well known‚ is the hemp plant cannabis sativa. The pharmacologically active ingredient in marijuana is tetra-hydro-cannabinol. Marijuana is used to heighten perception‚ affect mood and relax. It is estimated that about thirty percent of adults in the U.S. use marijuana. Many people think marijuana is harmless. It is not.
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Legalization of Medical Marijuana Marijuana is the dried leaves‚ flowers‚ stems‚ and seeds from the Cannabis plant. It is the most commonly used illicit drug in the United States‚ enabling one to have altered senses and hallucinations. Organizations have formed by those who wish to legalize marijuana‚ at least for medicinal purposes‚ but critics of such efforts argue that the drug does more harm than good. While some may benefit from the legalization of medical marijuana‚ such as those with Alzheimer’s
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